Stratasys(SSYS)

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Stratasys(SSYS) - 2025 Q1 - Earnings Call Transcript
2025-05-08 13:30
Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $136 million, down from $144.1 million in Q1 2024, reflecting a decrease in customer capital spending due to market uncertainties [13][14] - Product revenue decreased to $93.8 million from $99.2 million year-over-year, while service revenue fell to $42.2 million from $44.9 million [14] - GAAP gross margin was 44.3%, slightly down from 44.4% in the same period last year, while non-GAAP gross margin was 48.3%, down from 48.6% [15][16] - GAAP net loss for the quarter was $13.1 million, or $0.18 per diluted share, compared to a net loss of $26 million, or $0.37 per diluted share, in the same period last year [17] Business Line Data and Key Metrics Changes - System revenue was $31.2 million, down from $32.9 million year-over-year, while consumables revenue decreased to $62.6 million from $66.3 million [14] - Consumables revenue showed a sequential growth of approximately 7% compared to the previous quarter, indicating strong utilization rates [15] - Customer support revenue within service revenue was $30 million, down from $31.4 million year-over-year [15] Market Data and Key Metrics Changes - The company noted that most of its printers and materials are produced in the U.S. or Israel, which mitigates the impact of tariffs [5][6] - The ongoing tariff situation is being monitored, with expectations of no material revenue impact [6] Company Strategy and Development Direction - The company is focusing on high-growth end users driven by megatrends such as supply chain improvement, next-generation mobility, and sustainability initiatives [4] - A strategic investment of $120 million from Fortissimo Capital has strengthened the company's cash position to approximately $270 million with no debt, enhancing its ability to pursue growth opportunities [4][18] - The company is refining its strategic focus to target promising applications while enhancing customer engagement through improved go-to-market strategies [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties and emphasized a focus on securing profitability and EBITDA [28][29] - The outlook for 2025 anticipates revenues between $570 million to $585 million, with expectations of sequential growth throughout the year [19] Other Important Information - The company launched new products, including the NEO 800 plus 3D printer and advanced materials for industrial applications, enhancing its product portfolio [7][11] - The company is actively engaging with customers to explore additive manufacturing as a solution for mitigating uncertainties in the market [58] Q&A Session Summary Question: Impact of tariffs on imports from Israel - Management clarified that tariffs are paid on the cost of goods sold, with the current tariff at 10% not being material [25][26] Question: Economic situation forecast for the second half of the year - Management reiterated guidance, expecting a slight revenue increase in the second half, while focusing on securing EBITDA amidst market uncertainties [28][29] Question: Insights on consumables and utilization trends - Management noted a return to higher utilization rates and expected full-year consumables revenue to exceed 2024 levels [34] Question: Capital allocation and M&A appetite post-Fortissimo investment - Management indicated a focus on inorganic growth opportunities and strategic acquisitions aligned with their strategy [36][37] Question: R&D spending and focus areas - Management emphasized that R&D spending is focused rather than cut, maintaining investment in key technologies and use cases [42][43] Question: Competition from low-end manufacturers - Management stated that Stratasys focuses on industrial-grade solutions, differentiating itself through reliability and total cost of ownership [47][50] Question: Customer engagement and macroeconomic conditions - Management highlighted strong customer engagement despite macroeconomic uncertainties, emphasizing the advantages of additive manufacturing [58] Question: Involvement in GenAI and automation discussions - Management confirmed ongoing efforts to integrate with the GenAI and robotics communities, leveraging data for improved manufacturing solutions [64][66]
Stratasys (SSYS) Tops Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-08 13:20
Group 1 - Stratasys reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, compared to a loss of $0.02 per share a year ago, representing an earnings surprise of 33.33% [1] - The company posted revenues of $136.05 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.84%, but down from $144.05 million year-over-year [2] - Stratasys shares have increased approximately 9.3% since the beginning of the year, while the S&P 500 has declined by 4.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $137.88 million, and for the current fiscal year, it is $0.29 on revenues of $566.23 million [7] - The Commercial Printing industry, to which Stratasys belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] Group 3 - Stratasys has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] - The estimate revisions trend for Stratasys is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]
Stratasys(SSYS) - 2025 Q1 - Earnings Call Presentation
2025-05-08 12:02
Q1 2025 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR May 8, 2025 Make additive work for you Conference Call and Webcast Link US Toll-Free Dial-In 1-877-407-0619 International Dial-In Live Webcast and Replay +1-412-902-1012 Forward -Looking Statements Cautionary Statement Regarding Forward - Looking Statements The statements in this slide presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financia ...
How Should You Play Stratasys Stock After $120M Fortissimo Deal?
ZACKS· 2025-04-11 20:00
Stratasys Ltd. (SSYS) , a leader in polymer 3D printing solutions, has successfully closed a $120 million strategic investment from Fortissimo Capital, a move that significantly bolsters the company's financial position amid ongoing industry challenges. The investment, which was first announced in March and closed on April 10, 2025, provides Fortissimo with approximately 14% ownership of Stratasys' outstanding ordinary shares through the purchase of 11,650,485 newly issued shares at $10.30 each.With the inv ...
Stratasys Partners With Top Aerospace Giants for 3D Printing Materials
ZACKS· 2025-03-31 15:10
The company has launched AIS Antero 800NA and AIS Antero 840CN03 as validated materials for its Stratasys F900 platform, marking a significant advancement in qualified additive manufacturing for highly regulated industries. These materials underwent rigorous qualification in collaboration with leading organizations to meet the stringent requirements for high-temperature, chemical-resistant parts in mission- critical applications. The qualification program confirms that these Stratasys AIS materials meet the ...
Stratasys' Q4 Earnings Surpass Estimates, Revenues Fall Y/Y
ZACKS· 2025-03-06 16:40
Stratasys (SSYS) reported fourth-quarter 2024 non-GAAP earnings of 12 cents per share, which beat the Zacks Consensus Estimate by 9.09%. The company had posted non-GAAP earnings of 2 cents per share in the year-ago quarter.The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an average surprise of 52.27%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Quarterly revenues fell 3.8% year over year to $150.4 million. ...
Stratasys(SSYS) - 2024 Q4 - Annual Report
2025-03-06 14:30
Financial Support and Taxation - The company has received approximately $9 million in grants from the Israeli Innovation Authority for R&D activities since 2007, with an additional $1.9 million from European authorities[152]. - The average effective tax rate for profits from Israeli operations under government benefit programs is estimated to be between 7.5% and 15%, with the standard corporate tax rate set at 23% from 2018 onwards[150]. - The company is subject to royalty payments of 3% to 5% on revenues generated from products developed with IIA funding, which are linked to the U.S. dollar[155]. - Payment of dividends may be restricted under the Companies Law, requiring profits and surplus funds criteria to be met[171]. Capital and Investment Activities - The company is currently engaged in a PIPE transaction with Fortissimo Capital, which involves an investment of $120 million for 11,650,485 newly-issued ordinary shares at a price of $10.30 per share, reflecting a 10.6% premium over the market price[165]. - The company may need to raise additional capital, which could dilute existing shareholders if conducted at a lower price than their acquisition cost[165]. - Future capital requirements will depend on various factors, including the success of capturing additive manufacturing demand and costs associated with establishing sales and marketing capabilities[166]. - The company has approved a new share repurchase program in September 2024, allowing for the repurchase of up to $50 million of outstanding ordinary shares[168]. - The share repurchase program may reduce the public float of shares and cause volatility in the share price, with no assurance of a positive impact on share price or profitability[169]. Market Performance and Volatility - The market price of the company's ordinary shares has fluctuated between $6.16 and $54.37 from early 2020 to early 2025, indicating significant volatility[161]. - The market price of the company's ordinary shares has significantly declined, reaching all-time lows in 2024 before a slow recovery towards the end of the year[167]. Compliance and Regulatory Risks - The company may face increased liabilities if it fails to comply with the requirements of the Innovation Law, which could include penalties and mandatory repayment of grants[157]. - The company must comply with specific conditions to manufacture products and transfer technologies outside of Israel, which may increase its liabilities[152]. - The company is classified as a foreign private issuer, which allows for reduced disclosure requirements compared to domestic U.S. companies[173]. - If the company loses its foreign private issuer status, it will face increased compliance and reporting costs starting December 31, 2025[176]. - The company may be classified as a passive foreign investment company (PFIC), which could lead to adverse tax consequences for U.S. shareholders[177]. - The company does not believe it was a PFIC in 2024, but cannot assure that it will not become one in the future[178]. Dividend Policy - The company does not anticipate paying any cash dividends in the foreseeable future, meaning capital appreciation will be the sole source of return for shareholders[170].
Stratasys(SSYS) - 2024 Q4 - Earnings Call Transcript
2025-03-05 22:53
Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenue was $150.4 million, down 3.8% year-over-year. For the full year, consolidated revenue declined 8.8% to $572.5 million compared to $627.6 million in 2023 [31][33]. - Adjusted gross margin for Q4 was 49.6%, up from 48.8% in the same period last year. For the full year, non-GAAP gross margin improved by 100 basis points to 49.2% [35][36]. - GAAP net loss for Q4 was $41.9 million, or $0.59 per diluted share, compared to a net loss of $15 million, or $0.22 per diluted share, in the same period last year [39]. Business Line Data and Key Metrics Changes - Product revenue in Q4 fell by 4.8% to $105.1 million, with systems revenue down 1.5% to $46.7 million. Consumable revenue decreased by 7.3% to $58.4 million [31][32]. - For the full year, product revenue was $392 million, down from $433.7 million in 2023. Consumables revenue increased by 2.3% to $251.7 million [33][34]. Market Data and Key Metrics Changes - The company generated 36% of its revenues from manufacturing in 2024, up from 34% in 2023, indicating a shift towards end-part manufacturing [10]. - The dental market opportunity is projected to reach nearly $2.5 billion by 2028, with significant interest in the TrueDent resin [23][79]. Company Strategy and Development Direction - The company is focused on enhancing its leadership in additive manufacturing and is committed to right-sizing the business while maintaining R&D resources [9][51]. - The strategy includes a focus on high-value applications, particularly in manufacturing and the dental sector, with plans to expand its product offerings and customer base [10][80]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite current macroeconomic challenges, emphasizing the long-term value proposition of additive manufacturing [56][108]. - The outlook for 2025 anticipates revenue in the range of $570 million to $585 million, with expectations for sequential growth throughout the year [45]. Other Important Information - The company ended Q4 with $150.7 million in cash and equivalents, with no debt, providing a stable financial position to support growth initiatives [12][44]. - A $120 million investment from Fortissimo Capital is expected to close in Q2 2025, which will further strengthen the company's financial position [13][44]. Q&A Session Summary Question: Market conditions and revenue cadence for 2025 - Management acknowledged current downturns but highlighted strong customer engagement and a focus on reliability and effectiveness of equipment as key areas of customer interest [56][58]. Question: Gross margin guidance for 2025 - Management indicated that gross margins are expected to remain stable, with improvements anticipated as cost-saving measures take effect [62][64]. Question: Organic revenue growth and FX impacts - Management noted minimal impact from divestitures and hedging strategies in place to mitigate FX risks [75][76]. Question: Consumables revenue decline - Management described Q4 as an outlier and expressed confidence in a rebound in consumables revenue for 2025 [88]. Question: Acquisition targets and strategy - Management emphasized a clear strategy focused on shareholder value and indicated interest in opportunities that align with their long-term goals [97][102]. Question: Market verticals with confidence - Management identified dental, aerospace, and tooling as key verticals with growth potential, while remaining cautious about overall market conditions [112][113].
Stratasys(SSYS) - 2024 Q4 - Earnings Call Transcript
2025-03-05 15:46
Stratasys Ltd. (NASDAQ:SSYS) Q4 2024 Earnings Conference Call March 5, 2025 8:30 AM ET Company Participants Yonah Lloyd - Chief Communications Officer and Vice President, Investor Relations Yoav Zeif - Chief Executive Officer Eitan Zamir - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Troy Jensen - Cantor Fitzgerald Jim Ricchiuti - Needham & Company Ananda Baruah - Loop Capital Markets Operator Greetings, and welcome to the Stratasys Q4 2024 Earnings Conference Call and Webca ...
Stratasys (SSYS) Q4 Earnings and Revenues Beat Estimates
ZACKS· 2025-03-05 14:15
Company Performance - Stratasys reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and significantly up from $0.02 per share a year ago, representing an earnings surprise of 9.09% [1] - The company posted revenues of $150.36 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.70%, although this is a decline from year-ago revenues of $156.34 million [2] - Over the last four quarters, Stratasys has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Stock Movement and Outlook - Stratasys shares have increased approximately 19.4% since the beginning of the year, contrasting with a decline of -1.8% in the S&P 500 [3] - The future performance of Stratasys stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $135.54 million, and for the current fiscal year, it is $0.35 on revenues of $573.11 million [7] Industry Context - The Commercial Printing industry, to which Stratasys belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Stratasys may also be influenced by the outlook for the industry as a whole, with empirical research showing that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]